A trading account is the term used to describe virtually any type of account opened and kept at a brokerage firm. While the term trading account in the literal sense would indicate an account where buying and selling or “trading” was the primary focus, the term trading account could be used to describe an account with little or no activity.
It is not unusual for people to segregate their assets into different accounts with different investment objectives and risk tolerances. In that case they may have a trading account; i.e. an account where their objective is to actively buy and sell securities, as well as other accounts where the objectives may be different, such as preservation of capital.
Want to learn more about opening and managing a trading account? Call or email Loya & Associates today.